Industrial output climbed 0.4pc in October, according to the Office for National Statistics (ONS). While this marked a slowdown from September's 0.9pc jump, it beat economists' predictions of a 0.3pc monthly increase. On an annual basis, industrial production was up 3.2pc, in line with forecasts.

Manufacturing, the biggest component of industrial output, rose 0.4pc on the month, in line with forecasts. Output from power stations and water treatment works also climbed, offsetting a decline in the extraction industries, largely due to falling North Sea oil production.

The figures add to signs that British factories are beginning to benefit from the economic recovery. A closely-watched survey of thousands of UK factories suggested that manufacturing activity is grew at the sharpest rate in nearly three years in November and a surge in new orders suggested there was momentum to the recovery.

Nonetheless, economists warn that the apparent recovery in manufacturing, which has not picked up as quickly as Britain's dominant services sector, is still fragile.

“A rebalancing of the UK economy is still way off. Risks to the manufacturing sector remain from falls in export demand, due to increased economic pressures in the eurozone, and the continual and persistent rise in the pound against its trade partners,” said Jeremy Cook, chief economist at foreign exchange company World First.

Tuesday's trade figures also underlined the stubborn chasm between Britain's services and manufacturing sectors. An upward revision to third quarter trade showed Britain's exports of services hit a record high of £50.8bn between July and September. In October, Britain recorded a £9.7bn trade deficit in goods, compared with a £7.1bn surplus in services, bringing the overall trade shortfall to £2.6bn. This was unchanged from September's revised figure, but better than a year earlier, when the deficit stood at £3.3bn.

British goods exporters have been hit hard by the slowdown in the eurozone, historically their closest trading partner, and in October trade with the EU hit a record deficit of £6.5bn.

"Looking ahead, it is hard seeing net trade making a significant positive contribution to UK growth anytime soon although the hope has to be that exports will increasingly benefit from global growth gradually picking up over the coming months," he said, adding that sluggish eurozone growth combined with a strengthening pound could add to difficulties for British exporters.